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HANDLING CRITICAL EMPLOYMENT LAW ISSUES DURING AIRLINE RESTRUCTURING

HANDLING CRITICAL EMPLOYMENT LAW ISSUES DURING AIRLINE RESTRUCTURING. Aisha Abdallah Partner - Litigation Anjarwalla & Khanna, Advocates 18 June 2013. BOTSWANA | BURUNDI | ETHIOPIA | KENYA | MALAWI | MAURITIUS | MOZAMBIQUE | RWANDA | SUDAN | TANZANIA | UGANDA | ZAMBIA.

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HANDLING CRITICAL EMPLOYMENT LAW ISSUES DURING AIRLINE RESTRUCTURING

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  1. HANDLING CRITICAL EMPLOYMENT LAW ISSUES DURING AIRLINE RESTRUCTURING Aisha Abdallah Partner - LitigationAnjarwalla & Khanna, Advocates 18 June 2013 BOTSWANA | BURUNDI | ETHIOPIA | KENYA| MALAWI | MAURITIUS | MOZAMBIQUE | RWANDA | SUDAN | TANZANIA | UGANDA| ZAMBIA

  2. Airline Restructuring – the global picture Global economic problems have created imperatives for business restructuring. Deregulation Increased competition for business from LCC’s & other carriers. Rising & volatile fuel prices Airlines are already restructuring (American Airlines, Air France, Gulf Air, SA Airways, KQ,)

  3. Industry Challenges Growth Potential The African Context • Sustained growth in the air transport sector. • Air travel demand to, from, & within Africa forecast to outpace world average growth at 5.7% annually. • Long term growth at 4.4% above world average. • Airlines expanding flight routes and increasing fleet size. • The African aviation sector expected to experience growth of 6% by 2014. • Increased competition from foreign airlines & LCCs). • Low operating margins. • Lack of skilled workforce. • Inadequate capital for expansion. • Enhanced labour rights in some states.

  4. Restructuring options for African Airlines SOME COMMON OPTIONS

  5. The Critical Employment Law Issues UNCERTAINTY

  6. Restructuring as a Concept 3 KEY COMPONENTS

  7. Design – Phase I

  8. Forms of Design

  9. Redundancy

  10. Redundancy cont’d…

  11. Termination

  12. Business Process Outsourcing (BPO)

  13. BPO cont’d… Transfer of whole or part of business as a going concern

  14. BPO cont’d… Transfer of employees to BPO Provider

  15. Execution – Phase II

  16. Execution cont’d…

  17. Marketing – Phase III

  18. Take Home Points

  19. Questions ?

  20. BOTSWANABURUNDIETHIOPIAKENYAMALAWIMAURITIUSMOZAMBIQUENIGERIASUDANTANZANIAUGANDAZAMBIABOTSWANABURUNDIETHIOPIAKENYAMALAWIMAURITIUSMOZAMBIQUENIGERIASUDANTANZANIAUGANDAZAMBIA NAIROBIAnjarwalla & Khanna ALN House, Eldama Ravine Gardens, WestlandsPO Box 200-00606, Sarit Centre, Nairobi, Kenya Apollo Centre, 2nd Floor, Wing A, Ring Road Parklands, Westlands PO Box 200-00606, Sarit Centre, Nairobi, Kenya T +254 (0) 20 364 0000, + 254 (0) 703 032 000 F +254 (0) 20 364 0201 E nbi@africalegalnet.com MOMBASAAnjarwalla & Khanna S.K.A. House, Dedan Kimathi AvenuePO Box 83156–80100, Mombasa, KenyaT +254 41 2225090/6 F +254 41 2224996E mba@africalegalnetwork.com Legal Notice: these materials are for training purposes only and do not constitute legal or other professional advice.

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